At a glance, Intel (INTC) stock looks expensive. Trading around $128.32, the shares command a multiple of about 118x this year’s expected earnings. For many investors, that’s where the analysis stops. A triple-digit price-to-earnings ratio is often a dealbreaker, suggesting a price tag that has far outrun the business fundamentals.

But for a company in the middle of a turnaround, today’s earnings are not the full story. The real question is what you are paying for the earnings the business is expected to generate once its strategy takes hold. On that basis, the premium you see today is not necessarily the price you are really paying.

The Discount Patience Buys You

Look ahead to the…